JGB's set to open Tokyo at 150.27 after........>

JGBS: JGB's set to open Tokyo at 150.27 after moving down alongside Tsy's on the

overnight, Tsys ended Wednesday lower after choppy morning trade then quieter

range with varied curve trades, front end sales, 10Y futures sales, then some

front end dip buying.

- Barclays opening call: Today could see sellers take an upper hand around the

superlong end amid risk-on flows after USTs sold off sharply overnight. We

expect the 5y auction (JS133) to clear smoothly assuming yields around current

levels (WI close on 18 October: -0.08%). Given that those yields are above

-0.10%, the auction should attract a certain level of demand. With three BoJ

buying operations for 1-5y issues between today's auction and the month-end,

there will likely be short-term demand related to these operations in addition

to short covering.

- Today is busy on the Japanese calendar with bond and stock flow data, trade

balances and 2 auctions, a Y4.4tln 3-Month bill auction and a Y2.2tln 5-Year

bond auction. Yields are mostly up with less give on the belly, the very short

end is down after a strong 1-Year auction in yesterday's Tokyo session.